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Nordic Delivery Conference: consumer revolution puts pressure on carriers

Speaking at the Nordic Delivery Conference, a panel of guests including Johan Holgersson commercial director at Bring, one of the largest carriers in the region, described how the industry faces a consumer revolution that is creating increasing pressure to innovate. However, it’s not necessarily a bleak prospect and carriers will find they have different opinions on how to respond.

Four big names in the carrier sector were on stage at the Nordic Delivery Conference 2015, which was sponsored by EDI-Soft, last week to debate the issue of competitive advantage through delivery services. The Conference took place in Copenhagen where Bring, DPD UK, PostNord and DHL discussed where the pressure to innovate is coming from and how to respond positively. PostNord began by explaining why it only recently introduced Saturday delivery when DPD has offered it in the UK for several years.

“We follow the consumers’ demands, and Saturday delivery has not been requested before. We are therefore launching it now, ” Carsten Dalbo, head of logistics & e-commerce at PostNord, explained.

Johan Holgersson, commercial director at Bring agreed that there is a difference between the UK and Nordic market, and that a consumer revolution in the Nordics is only now gathering enough momentum to force carriers to innovate. As a result, more consumer-friendly delivery services are now being introduced in the Nordic region.

The Amazon effect hits the Nordics

This change in consumer expectations is due in part to international e-commerce giants like Amazon and Alibaba entering the Nordic market. Having acquired delivery strategies and large shipping volumes prior to entering the Nordic market, they are already in a strong position to influence other players.

“Amazon puts pressure on the US and UK markets,’ said Dwain McDonald, CEO at DPD. “Therefore, they have long been ahead of the Nordic countries with regard to delivery services. But I think all this will change now.”

The Amazon effect is not the only thing that can threaten carriers. The number of UBER inspired delivery apps and services, such as Danish TrunkBird and Norwegian Nimber who rethink the entire delivery concept, is on the rise.

UBER is not a threat

On stage, there were different opinions on how TrunkBird and Nimber will impact carriers. While Carsten Dalbo did not see them as an important issue, Johan Holgersson was more open to the idea of exploiting new delivery concepts and stressed that this kind of disruptive app-based approach will continue to push carriers to innovate.

Morten Villberg, managing director of DHL, wouldn’t rule out that DHL would one day will take part in the social delivery platform trials.

Johan Holgersson added: “The most important thing is to give consumers freedom of choice in their delivery options.”

Fast facts:

  • 500 guests and 30 exhibitors participated in the Nordic Delivery Conference 2015, which focused on delivery as a competitive advantage
  • EDI-Soft which produces, develops and sells delivery management software hosted the Nordic Delivery Conference 2015
  • Bring is a carrier and logistics operator with Norwegian roots, and is the second largest carrier in the Nordics
  • Bring is especially known for its many options for private deliveries
  • PostNord AB is an aggregation of Danish Post Danmark A/S and Swedish Posten AB, and is a leading logistics company in the Nordics
  • PostNord is still very strong in the Swedish and Danish postal field and has experienced significant growth in parcel logistics

 

The above photograph shows the four carriers and debate moderator on stage at the Nordic Delivery Conference 2015 at the Tivoli Hotel & Congress Centre in Copenhagen. From left-to-right: Mads Steffensen, journalist; Johan Holgersson, commercial director at Bring; Carsten Dalbo, head of logistics & e-commerce at PostNord; Dwain McDonald, CEO at DPD; Morten Villberg, managing director at DHL Parcel Nordic & UK.